The lender said adding short-term lets to its Property Plus range showed its “commitment to evolving its specialist lending proposition in line with growing market demand from intermediary partners and their landlord clients”.
It explained that the short-term let Plus range had been introduced due to “greater landlord interest” in this market.
The deals are aimed at properties being let on a short-term basis through platforms like Airbnb, or being used by contractors, tradespeople and remortgage workers looking for more flexible accommodation.
The short-term let properties will be valued on potential buy-to-let (BTL) rental income, confirmed by a valuer, and holiday income-only and seasonal lets will remain out of scope.
Foundation Home Loans said new STL Plus rates include two- and five-year fixed rates up to 75% loan to value (LTV), with pricing starting from 6.89% with a 2% fee.
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The lender is refreshing its existing Property Plus and HMO Plus range. Two-year fixed Property Plus rates will begin from 6.84%, while its five-year fixed rates will begin from 6.74%.
Property Plus fixed flex options will start from 6.74% and 6.75% for two- and five-year fixed rates respectively.
HMO Plus two- and five-year fixed rates with a 2% fee will be priced from 6.94% and 6.84% apiece.
Foundation Home Loans will also remove the £100,000 minimum loan size for Property Plus deals, citing its “consistent strong-quality cases” received.
Tom Jacob, director of product and proposition at Foundation Home Loans, said: “We’ve listened to broker feedback and seen first-hand the growing demand for more flexible solutions in the specialist buy-to-let space. Short-term lets are one of the fastest growing property types, and by formally introducing them into our Property Plus proposition, we’re enabling brokers to serve more landlords with more relevant product options.
“Removing the £100k minimum loan size across all Plus products was also a logical next step – we’re confident in the quality of cases we receive and want to ensure advisers can offer competitive solutions to clients across the full loan-size spectrum.
“Combined with rate reductions and product simplification, this refresh further strengthens our commitment to a flexible and practical buy-to-let proposition that reflects the real-world needs of advisers and their landlord clients today.”
Earlier this month, the firm secured £550m in funding.
